diff --git a/Dockerfile b/Dockerfile
index 0d727f6b4..780e1c540 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -11,7 +11,7 @@ RUN ${CONDA_BIN} install --no-pin -qq -y -n base -c conda-forge \
 ENV PATH="$PATH:/home/mambauser/.local/bin"
 
 COPY --chown=${HOST_UID:-1000}:mambauser ./pyproject.toml ./README.md ./LICENSE.txt /main/
-COPY --chown=${HOST_UID:-1000}:mambauser ./datajoint /main/datajoint
+COPY --chown=${HOST_UID:-1000}:mambauser ./src/datajoint /main/src/datajoint
 
 VOLUME /src
 WORKDIR /src
diff --git a/docker-compose.yaml b/docker-compose.yaml
index d09d06d49..40b211756 100644
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -40,7 +40,7 @@ services:
       context: .
       dockerfile: Dockerfile
       args:
-        PY_VER: ${PY_VER:-3.8}
+        PY_VER: ${PY_VER:-3.9}
         HOST_UID: ${HOST_UID:-1000}
     depends_on:
       db:
diff --git a/pyproject.toml b/pyproject.toml
index b98361fe8..b1d672af8 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -99,6 +99,7 @@ profile = "black"
 
 [tool.setuptools]
 packages = ["datajoint"]
+package-dir = {"" = "src"}
 
 [tool.setuptools.dynamic]
 version = { attr = "datajoint.version.__version__"}
diff --git a/datajoint/__init__.py b/src/datajoint/__init__.py
similarity index 100%
rename from datajoint/__init__.py
rename to src/datajoint/__init__.py
diff --git a/datajoint/admin.py b/src/datajoint/admin.py
similarity index 100%
rename from datajoint/admin.py
rename to src/datajoint/admin.py
diff --git a/datajoint/attribute_adapter.py b/src/datajoint/attribute_adapter.py
similarity index 100%
rename from datajoint/attribute_adapter.py
rename to src/datajoint/attribute_adapter.py
diff --git a/datajoint/autopopulate.py b/src/datajoint/autopopulate.py
similarity index 100%
rename from datajoint/autopopulate.py
rename to src/datajoint/autopopulate.py
diff --git a/datajoint/blob.py b/src/datajoint/blob.py
similarity index 100%
rename from datajoint/blob.py
rename to src/datajoint/blob.py
diff --git a/datajoint/cli.py b/src/datajoint/cli.py
similarity index 100%
rename from datajoint/cli.py
rename to src/datajoint/cli.py
diff --git a/datajoint/condition.py b/src/datajoint/condition.py
similarity index 100%
rename from datajoint/condition.py
rename to src/datajoint/condition.py
diff --git a/datajoint/connection.py b/src/datajoint/connection.py
similarity index 100%
rename from datajoint/connection.py
rename to src/datajoint/connection.py
diff --git a/datajoint/declare.py b/src/datajoint/declare.py
similarity index 100%
rename from datajoint/declare.py
rename to src/datajoint/declare.py
diff --git a/datajoint/dependencies.py b/src/datajoint/dependencies.py
similarity index 100%
rename from datajoint/dependencies.py
rename to src/datajoint/dependencies.py
diff --git a/datajoint/diagram.py b/src/datajoint/diagram.py
similarity index 100%
rename from datajoint/diagram.py
rename to src/datajoint/diagram.py
diff --git a/datajoint/errors.py b/src/datajoint/errors.py
similarity index 100%
rename from datajoint/errors.py
rename to src/datajoint/errors.py
diff --git a/datajoint/expression.py b/src/datajoint/expression.py
similarity index 100%
rename from datajoint/expression.py
rename to src/datajoint/expression.py
diff --git a/datajoint/external.py b/src/datajoint/external.py
similarity index 100%
rename from datajoint/external.py
rename to src/datajoint/external.py
diff --git a/datajoint/fetch.py b/src/datajoint/fetch.py
similarity index 100%
rename from datajoint/fetch.py
rename to src/datajoint/fetch.py
diff --git a/datajoint/hash.py b/src/datajoint/hash.py
similarity index 100%
rename from datajoint/hash.py
rename to src/datajoint/hash.py
diff --git a/datajoint/heading.py b/src/datajoint/heading.py
similarity index 100%
rename from datajoint/heading.py
rename to src/datajoint/heading.py
diff --git a/datajoint/jobs.py b/src/datajoint/jobs.py
similarity index 100%
rename from datajoint/jobs.py
rename to src/datajoint/jobs.py
diff --git a/datajoint/logging.py b/src/datajoint/logging.py
similarity index 100%
rename from datajoint/logging.py
rename to src/datajoint/logging.py
diff --git a/datajoint/preview.py b/src/datajoint/preview.py
similarity index 100%
rename from datajoint/preview.py
rename to src/datajoint/preview.py
diff --git a/datajoint/s3.py b/src/datajoint/s3.py
similarity index 100%
rename from datajoint/s3.py
rename to src/datajoint/s3.py
diff --git a/datajoint/schemas.py b/src/datajoint/schemas.py
similarity index 100%
rename from datajoint/schemas.py
rename to src/datajoint/schemas.py
diff --git a/datajoint/settings.py b/src/datajoint/settings.py
similarity index 100%
rename from datajoint/settings.py
rename to src/datajoint/settings.py
diff --git a/datajoint/table.py b/src/datajoint/table.py
similarity index 100%
rename from datajoint/table.py
rename to src/datajoint/table.py
diff --git a/datajoint/user_tables.py b/src/datajoint/user_tables.py
similarity index 100%
rename from datajoint/user_tables.py
rename to src/datajoint/user_tables.py
diff --git a/datajoint/utils.py b/src/datajoint/utils.py
similarity index 100%
rename from datajoint/utils.py
rename to src/datajoint/utils.py
diff --git a/datajoint/version.py b/src/datajoint/version.py
similarity index 100%
rename from datajoint/version.py
rename to src/datajoint/version.py